China’s air purifier sales decline with the improvement of air quality
Demand declines with the arrival of several new competitors
The booming market for air purifiers is booming. The air in big cities like Beijing is so bad that Chinese consumers are willing to pay more than just RMB2. 000 ($ 330) for an air purifier that purifies the air.
However, for many companies experiencing an economic boom, poor air quality is no longer an informative revenue. The rise of the Chinese air purifier market coincided with a market downturn as air quality improved this year, companies and consultants announced.
Aigle, an American company targeting more than 250 stores in China for the high-end OEM air purifier market, reported that online sales “dropped 10 to 20 percent this year,” said Ivan. Lo, President of Aigle. He gives an increase in the number of competitors.
Bengt Rittri, senior director of Blueair, a market leader, also highlights the increasingly crowded market for “200 new competitors in the market last year”. He explained that the 2013 boom prompted companies to enter the market. “Suddenly the market exploded and everyone wanted an air purifier in China,” Ritter said of the years of strong growth.
Thomas Talhelm, the founder of Smart Air, a social DIY air filter company that wants to market a cost-effective product, believes that the recent price erosion is inevitable. “The air purifiers sold between $ 1,000 and $ 500 – a ridiculous amount, especially given that there would be one for the bedroom, one for the living room, etc,” said Mr. Talhelm.
“The air purifiers are not a patented technology, they’re made of the same material as a polyester shirt and can be made for $ 30, so even if Smart Air did not show up, the market would understand that.” “he added.
According to a report by the market research firm China Market Monitor, around 5.1 million air purifiers were sold throughout China in 2014. However, revenue decreased 18% in the first half of 2015 and the Company’s projections The report attributes this decline to the improvement in urban air quality.
All View Cloud, a Beijing-based data analytics company, also reports a shrinking market and expects total sales of RB $ 5.81 billion ($ 907 million) for air purifiers. a first half-year or 20.5% in one year. Annual decline with a decline in sales of 10%.
The deterioration in air quality levels in 2013 had led to a boom in the air purifier market. Companies like Dyson and Aigle have grown rapidly and stormed the market. The research company Euromonitor announced in 2014 a market growth of 47%. The lack of government intervention to reduce air pollution and the increasing penetration of a wider group of consumers are key factors.
Air pollution in Beijing has demonstrably improved since 2013. The average air quality index fell to 156 in the first quarter of this year, compared with 208 in the first quarter of 2013. In general, the US 150 AQI standards are considered “unhealthy”.